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The Role of Digital Supply Chain on Inventory Management Effectiveness within Engineering Companies in Jordan

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  • Ahmad Ali Atieh Ali

    (Business Faculty, Middle East University, Amman 11831, Jordan)

  • Abdallah A. S. Fayad

    (Tunku Puteri Intan Safinaz School of Accountancy, College of Business, Universiti Utara Malaysia, Sintok 06010, Malaysia)

  • Abdulrahman Alomair

    (Assistant professor of Accounting, Accounting Department, Business School, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

  • Abdulaziz S. Al Naim

    (Assistant professor of Accounting, Accounting Department, Business School, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

Abstract

This research enters deeply into the critical dynamics of characteristics within digital supply chains and their collective eventual influence on inventory management efficiency. The study uses an exhaustive survey of 350 engineering company representatives to reveal the complex interactions between different qualities of supply chain systems-on-time data and inventory practice efficiency. By applying advanced techniques of regression analysis, the authors worked out three hypotheses and exhaustively tested them to find out the impact of digital adaptivity, dynamism and flexibility on both the visibility of information and inventory management effectiveness. This study has many interesting findings. First, this paper found strong positive connections between Digital Adaptability Supply Chain and Digital Flexibility Supply Chain in terms of both information visibility and inventory management effectiveness. These results argue that to effectively manage inventory levels with optimal information transparency across its network of links, companies must establish supply chain systems that can adapt to change and embrace flexibility. Digital Agility Supply Chain did not show any significant relationships with these variables, but it could be important. We need to study its nuances until we know how it is going to affect supply chain performance indices. This paper encourages investment in new supply chain technologies that will help all the engineering companies in Jordan be more adaptable and flexible. It also calls for adding data analysis capabilities across the company directly into supply chain processes through real-time tracking solutions. These solutions will make it easier to see and give decision-makers quick, reliable information about inventory management practices and agreement practices. By incorporating these recommendations, all Jordanian engineering companies can enhance their supply capacity and appropriate inventory management procedures to compete in the evolving marketplace now finally taking effect.

Suggested Citation

  • Ahmad Ali Atieh Ali & Abdallah A. S. Fayad & Abdulrahman Alomair & Abdulaziz S. Al Naim, 2024. "The Role of Digital Supply Chain on Inventory Management Effectiveness within Engineering Companies in Jordan," Sustainability, MDPI, vol. 16(18), pages 1-25, September.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:18:p:8031-:d:1477854
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    References listed on IDEAS

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    1. Mahmoud Abou Kamar & Omaima Munawar Albadry & Samar Sheikhelsouk & Mohammed Hasan Ali Al-Abyadh & Omar Alsetoohy, 2023. "Dynamic Capabilities Influence on the Operational Performance of Hotel Food Supply Chains: A Mediation-Moderation Model," Sustainability, MDPI, vol. 15(18), pages 1-21, September.
    2. Safinaz H. Abourokbah & Reem M. Mashat & Mohammad Asif Salam, 2023. "Role of Absorptive Capacity, Digital Capability, Agility, and Resilience in Supply Chain Innovation Performance," Sustainability, MDPI, vol. 15(4), pages 1-25, February.
    3. Benzidia, Smail & Makaoui, Naouel & Bentahar, Omar, 2021. "The impact of big data analytics and artificial intelligence on green supply chain process integration and hospital environmental performance," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
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